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SkyCity warns of profit dip

20 October 2006

NEW ZEALAND – As reported by New Zealand Stuff: "It is often said of casinos that the house never loses. But SkyCity Entertainment Group's Auckland VIP customers have won about $10 million off the house this year, leading to the casino operator warning of a fall in annual profit.

"As well, high petrol prices were cutting into customers' disposable income, SkyCity said yesterday after announcing its net profit for the June 2007 year would be between $100 million and $110 million, compared with analysts' expectations for profit roughly in line with 2006's $120 million.

"…SkyCity shares fell 6 cents to $5.12 this week.

"Chief executive Evan Davies said the number of visitors passing through SkyCity's Auckland operations, which contribute 67 per cent of annual group operating earnings, had remained steady. However, customers were spending less money.

"Meanwhile, house losses at the Auckland VIP commission tables year-to-date totalled nearly $10 million…"

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